MTNL plans more JVs for IT services

MUMBAI, JAN 25: Public sector major Mahanagar Telephone Nigam Ltd MTNL is open to more joint ventures, tie-ups and strategic alliances t...

MUMBAI, JAN 25: Public sector major Mahanagar Telephone Nigam Ltd MTNL is open to more joint ventures, tie-ups and strategic alliances to offer both internet related services and its core business of telephones in other parts of the country and around the world. quot;We are scouting for more joint ventures for infotech related services. We are also setting up a separate 100 per cent subsidiary just to route all our investments in IT related services,quot; S Ramani Iyer, Chief General Manager CGM of MTNL said here today.

Speaking to this newspaper, Iyer 8211; who has been credited with an aggressive push of MTNL8217;s net services in Mumbai 8211; said: quot;Thanks to our navratna status 8211; under which decision making powers have been decentralised 8211; we can take a decision to tie up with other content providers to give value added services to our internet customers,quot; he said. quot;We are highly interested in vertical integration and with intense convergence taking place, it would be difficult for an telecom company to work inisolation,quot; Iyer said.

Citing an example, Iyer said MTNL can tie up with other equipment manufacturers and offer services in other countries thus exploiting its core strength of being an experienced telecom services provider. quot;Due to tax concessions granted by the government to IT sector, we are floating a separate joint venture, Millennium Telecom, through which all our investments on Infotech industry would be routes,quot; Iyer said.

The company will begin its operations in the next few days8217; and MTNL is currently scouting for a CEO to head the new company. The navratna plans to invest around Rs 100 crore in the new company and is open for strategic investors for the new company.

MTNL, which has recently cut its internet rates to Rs 6,000 for unlimited access, is also looking at the option of offering net services in the rest of the country. quot;MTNL is changing very fast8230; decision making in the organisation has been expedited in order to meet competition. Thus, we have applied for an ISP license with thegovernment and very soon we will launch our services across the country,quot; he said. In Mumbai itself, MTNL has over 12,000 net connection which is expected to increase to 35,000 by March this year and one lakh by the end of 2000. On the launch of cellular phone services in Mumbai, Iyer said MTNL has placed the equipment order of 1 billion with Bangalore-based ITI and Lucent.

New portal

MUMBAI: MTNL forged a strategic alliance with city-based newspaper Mid-day to launch a Mumbai-specific portal. As per the agreement, MTNL will provide high speed internet and hosting services while mid-day.com will be the portal partner with the site being the default log on for MTNL connections sold and distributed through the alliance.